Daisy’s £6m swoop on data firm
SMALL business telecoms specialist Daisy Group has dialled up its first deal of 2010 with a £6m swoop on a data networks provider.
Daisy, which is based in Nelson, Lancashire, floated on AIM last year via a reverse takeover and then embarked on an acquisitions drive.
Its latest deal is for Nottingham-based Managed Communications, which it is buying for an initial £6.3m.
Managed Communications provides data networks through bonded ADSL and SDSL lines to around 800 SME customers.
With search engine optimisation tools, the company sells internet access, VPN, managed security, email and managed bandwidth solutions through its www.managedcomms.co.uk site and VPN services through its www.vpn.co.uk site.
The amount paid by Daisy will depend on the performance of the business in the next six months.
In the year ended December 31 Managed Communications’ unaudited management accounts show that it generated adjusted revenue of £3.8m and EBITDA of £1.6m. Managed Communications is expected to have £1.1m of cash at completion.
Matthew Riley, chief executive of Daisy, said :”Strategically this is the right acquisition for us as we move forward into a data rich and more converged world.
“The combination of Managed Communications and their product offering, with Daisy’s sales force and SME customer base, creates cross-selling potential and the opportunity for margin improvement.
“Through this acquisition, we have strengthened our data offering, increased our range of services and will be able to provide our SME customers with more of what they want.”
Law firm Eversheds advised Daisy in the deal. Corporate partner Keith Froud led a team from the Leeds and Manchester offices and was assisted by Geoff Allen and Lizzie Ray.
